Apr 24 2012 |
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Nawras Q1 profit declines 19%
Nawras said first-quarter 2012 net profit dropped 19.1 per cent to RO9.8mn from RO12.1mn in the same quarter of 2011. Reporting unaudited financial results for the first quarter ended March 31, 2012, the company said total revenue declined 2.7 per cent to RO46.8mn mainly due to a drop in SMS revenue which was not fully compensated by growth in data revenue.The company said that latest-quarter revenue also included a one-off accounting adjustment of RO658,000. According to analysts, market competition negatively affected revenues of the company as it had to slash call rates.
However, the customer base in mobile and fixed services grew 2.4 per cent to 1,988,476 from 1,942,371 in the first quarter of last year. Nawras said that customer growth was mainly in the fixed and prepaid-mobile services.
He said, However, I am pleased to say that the number of our fixed broadband customers continued to grow significantly year on year at a rate of 273 per cent.
That was followed closely with a demonstration of our 4G LTE service capabilities at the Muscat Grand Mall, Cormack added.
Anil Kumar, senior vice president-research at Fincorp, said that the first quarter result is below market expectations as the decline in call rates and market competition negatively impacted overall margins of the company.
Another analyst said that the first-quarter results are disappointing as net profit and overall margins of the company have seen a big decline. Revenue has declined due to competition in the market. There might still be some cost pressure due to higher employee costs.
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